At knowledge to accelerate internal innovation, and expand

At present years companies extend their boundaries to adopt
external expertise in their innovation process, this leads to a complete open
innovation phenomenon. Open
Innovation was defined as the use of purposive inflows and
outflows of knowledge to accelerate internal innovation, and expand
the markets for external use of innovation, respectively (Henry
Chesbrough, 2003).Companies extend their resources with use of external
knowledge along with Crowd Sourcing. Where it contributes its most of the usage
in generation of new ideas in an online medium. This is mainly used on external
process of open innovation. Moreover the present papers and research work on crowd
sourcing and open innovation rely on external crowd engagement. Internal
innovation also has the usage of crowd sourcing; however the exact difference between
these two is still not identified to some extent. So in this paper we analysis
and figure those differences in internal and external crowds for idea
generation and idea sourcing. The paper is formatted in a way where we go
through the literature on crowd sourcing and its methods then we proceed with empirical
data along with an example case study and presented the results to get an overview
on the research findings.


2. CROWDSOURCING – Theoretical background

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now



A. Crowd Sourcing –Definition


“Crowdsourcing is a type of
participative online activity in which an individual, an institution, a
nonprofit organization, or company proposes to a group of individuals of
varying knowledge, heterogeneity, and number, via a flexible open call, the voluntary
undertaking of a task. The undertaking of the task; of variable complexity and
modularity, and; in which the crowd should participate, bringing their work,
money, knowledge **and/or** experience, always entails mutual benefit. The
user will receive the satisfaction of a given type of need, be it economic,
social recognition, self-esteem, or the development of individual skills, while
the crowdsourcer will obtain and use to their advantage that which the user has
brought to the venture, whose form will depend on the type of activity

The actual  meaning of
crowd sourcing is to outsource an activity to the crowd. From the above definition , it says  that the tasks involved in crowd sourcing is
of different types but in reality for innovation the crowd sourcing consists of
only one task. But there are other tasks exist without innovation phenomenon.
Internet medium crowd sourcing enables many users who carry out number of tasks
in less time period and also for lower cost compared to internal medium.crowdsourcing
with innovation nature, can be defined as “the public generation of
innovation solutions to a complex problem posed by the company sponsoring the
challenge call.” Companies do provide main sponsorship for
crowdsourcing which carry out innovation process. They get ideas for new
product and business development.